This paper reviews key findings of the IMF's Annual Report for the fiscal year ended April 30, 1971. The report highlights that the performance of the world economy during 1970 and the first part of 1971 was less than satisfactory in certain major respects. Performance was heavily dominated by developments in the larger industrial countries. The expansion of total world output proceeded at a slow and irregular pace, primarily because of the 1969-70 recession and ensuing moderate pickup of economic activity in the United States.